By Faridah Djellal
The definition and size of productiveness in providers increases very important conceptual, methodological and strategic difficulties. This ebook goals to supply a serious evaluation of the most debates on productiveness within the area of companies. the 1st half examines the theoretical results of prone specificities at the thought of productiveness and studies the makes an attempt to degree it. the second one half is dedicated to the most determinants of productiveness development and the thoughts to extend productiveness in carrier organizations and businesses.
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Extra resources for Measuring and Improving Productivity in Services: Issues, Strategies and Challenges
F is the production function. It depends on vector xi of the N inputs and on vector ␤ of the technological parameters. TEi is the technical eﬃciency of ﬁrm i. It can be written TEi ϭ yi րf (xi, ␤), which is the ratio of the observed output to the maximum possible output. 11) Technical eﬃciency is then TEi ϭ exp(Ϫui). One of the weaknesses of these deterministic frontiers is that they take no account of random measurement errors. Rather, the whole of the distance from the frontier is regarded as technical ineﬃciency.
They are used mainly in academic studies, but national statistical bodies and, on occasions, ﬁrms also use them. More rarely, they may also be used to conduct international comparisons at an aggregated level. We shall conﬁne ourselves here to outlining brieﬂy the general principles of the most frequently used of these non-parametric methods. By far the most commonly used non-parametric method is so-called data envelopment analysis (DEA). Based on linear programming techniques, the DEA method involves the construction of a production frontier equating to best practices in matters of technical eﬃciency.
The only solution is to stop using this concept in order to evaluate the performance of an individual, a team or an organization. Such a situation may arise ﬁrst in areas characterized by considerable informational asymmetries where moral hazard comes into play. This is the case, for example, with certain support functions such as maintenance and IT development, and with intellectual design, planning and steering functions. It also arises in areas characterized by strong service relations (particularly social and civic relations).